Why This European VC's New Fund Signals a Major Shift in Startup Funding

Jan de Vries · 2026-10-01

Let's talk about a quiet shift happening in European venture capital. It's not coming from London or Berlin this time, but from Sofia. LAUNCHub Ventures just announced the first close of their third fund, and the numbers tell a compelling story about where smart money is heading. They've already secured about $70 million in commitments, with a target of over $80 million for the full fund. That's serious capital. But what's really interesting is who's backing them. It's not just the usual suspects. ### The Backers Tell the Story You've got leading international financial institutions, regional entrepreneurs, and family offices all coming to the table. But here's the kicker - more than ten of LAUNCHub's own portfolio founders who've already exited their companies are putting money back in. They're supporting the next generation. When founders who've been through the journey themselves bet on you, that means something. Stanislav Sirakov, a General Partner at the firm, put it perfectly: "Fourteen years in, our conviction about this region gets stronger and the results we see further support our thesis. Close to 100 companies, 18 exits, and around 40% of our pre-seed and seed investments reaching Series A. Fund III lets us keep backing founders here at the point where it matters most." That's the kind of track record that makes investors sit up and take notice. ### Where the Money Comes From This isn't just private capital doing its thing. Fund III gets its muscle from some heavyweight European programs: - The European Investment Fund (EIF) - The European Bank for Reconstruction and Development (EBRD) - The EU's NextGenerationEU recovery program - The Romanian government through their Recovery Equity Fund - The Bulgarian government's Recovery and Resilience Plan The International Finance Corporation, which backed their second fund, is reportedly considering joining the second close too. That's institutional validation you can't buy. ### A Proven Approach to Early-Stage Investing LAUNCHub has been at this since 2012, focusing on pre-seed and seed stage startups across Central and Eastern Europe. Their approach? Find promising founders early and stick with them. Across their first two funds, they've backed nearly 100 companies with over $108 million under management. Here's what success looks like for them: - Portfolio companies have attracted over $756 million in follow-on funding - Investors include big names like Founders Fund, Sequoia, Index Ventures - 75% of their portfolio companies raise follow-on rounds - About 40% reach Series A funding - They've had 18 exits to date Some of their notable investments include Ampeco, FintechOS, Colossyan, and Giraffe360. Their exit portfolio includes companies acquired by Zscaler, Triller, and Blue Star. ### What Fund III Means for Founders With this new fund, LAUNCHub plans to make around 25 early-stage investments over the next five years. Their initial checks will range from about $324,000 to $3.24 million, and they're prepared to lead or co-lead rounds up to $7.56 million. They're already putting money to work. The fund has already led rounds in: - Nanogram, an AI-powered social gaming platform - Lenz, which verifies factual claims in AI-generated content - 1Club, an AI-native software platform for the sports industry ### Building for the Long Haul Alongside the fund announcement, LAUNCHub promoted Raya Yunakova and Petar Tsachev to General Partners. The founding leadership team remains intact, while they've added Vedran Blagus as Associate Partner covering Croatia, Slovenia, and the Western Balkans, and Nikoleta Popkostadinova as Head of Marketing. Here's what this all means if you're watching European startups: there's growing confidence in Central and Eastern Europe's innovation ecosystem. The money's there, the track record's proven, and the founders who've already succeeded are betting on the next wave. It's a virtuous cycle that could reshape which European cities become startup hubs in the coming decade.